EPAM Systems (NYSE:EPAM) Shares Gap Down on Analyst Downgrade

EPAM Systems, Inc. (NYSE:EPAM) gapped down prior to trading on Thursday after JPMorgan Chase & Co. lowered their price target on the stock from $142.00 to $120.00. The stock had previously closed at $109.87, but opened at $87.35. JPMorgan Chase & Co. currently has an overweight rating on the stock. EPAM Systems shares last traded at $94.3230, with a volume of 513,344 shares changing hands.

A number of other brokerages have also weighed in on EPAM. The Goldman Sachs Group lowered EPAM Systems from a “buy” rating to a “neutral” rating and cut their price objective for the stock from $215.00 to $110.00 in a research report on Friday, May 8th. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and issued a $85.00 price target on shares of EPAM Systems in a research note on Friday, July 10th. TD Cowen decreased their price objective on EPAM Systems from $131.00 to $120.00 and set a “buy” rating for the company in a report on Friday. Weiss Ratings reissued a “sell (d+)” rating on shares of EPAM Systems in a research report on Tuesday. Finally, Guggenheim dropped their target price on shares of EPAM Systems from $225.00 to $200.00 and set a “buy” rating on the stock in a report on Monday, May 4th. Seven investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, EPAM Systems currently has an average rating of “Hold” and an average price target of $125.13.

Key Stories Impacting EPAM Systems

Here are the key news stories impacting EPAM Systems this week:

• Positive Sentiment: EPAM reported second-quarter non-GAAP EPS of $3.38, above the $3.14–$3.16 analyst consensus, while revenue of $1.415 billion was approximately in line with expectations and increased 4.5% year over year. Non-GAAP operating margin expanded to 16.4% from 15.0%, and EPS rose 22% from the prior year. EPAM Reports Results for Second Quarter 2026
• Positive Sentiment: Full-year adjusted EPS guidance of $13.08 to $13.24 is above the roughly $12.53 consensus, and third-quarter EPS guidance of $3.38 to $3.46 also exceeds estimates. EPAM additionally repurchased $85 million of stock during the quarter, bringing year-to-date repurchases to $409 million. EPAM Q2 Earnings and Revenues Surpass Estimates
• Neutral Sentiment: JPMorgan lowered its price target to $120 from $142 but retained an “overweight” rating. Susquehanna cut its target to $146 from $167 while maintaining a “positive” rating, and Needham reduced its target to $120 from $135 while keeping a “buy” rating. The revised targets still imply substantial potential appreciation from recent levels.
• Negative Sentiment: EPAM reduced its full-year revenue-growth outlook to 3.2%–4.2%, including 2.0%–3.0% organic constant-currency growth, reflecting weaker demand for software services. Reuters reported that the forecast cut triggered a sharp premarket selloff and remains the main investor concern. EPAM Cuts Annual Revenue Forecast on Weak Software Services Demand
• Negative Sentiment: Truist lowered its price target to $110 from $112 and assigned a “hold” rating, while William Blair downgraded EPAM from “outperform” to “market perform.” These actions reinforce caution around the company’s slower top-line growth.

Hedge Funds Weigh In On EPAM Systems

Several institutional investors have recently made changes to their positions in the business. Massachusetts Financial Services Co. MA boosted its stake in EPAM Systems by 1.3% in the 4th quarter. Massachusetts Financial Services Co. MA now owns 1,072,937 shares of the information technology services provider’s stock worth $219,823,000 after purchasing an additional 13,768 shares during the period. B. Metzler seel. Sohn & Co. AG increased its holdings in shares of EPAM Systems by 289.9% in the 4th quarter. B. Metzler seel. Sohn & Co. AG now owns 17,297 shares of the information technology services provider’s stock worth $3,544,000 after buying an additional 12,861 shares during the last quarter. Aikya Investment Management Ltd increased its stake in EPAM Systems by 8.4% during the fourth quarter. Aikya Investment Management Ltd now owns 763,798 shares of the information technology services provider’s stock worth $156,487,000 after acquiring an additional 58,977 shares during the last quarter. Van Berkom & Associates Inc. increased its position in shares of EPAM Systems by 14.6% during the 4th quarter. Van Berkom & Associates Inc. now owns 423,510 shares of the information technology services provider’s stock valued at $86,769,000 after purchasing an additional 54,075 shares during the last quarter. Finally, Merit Financial Group LLC raised its stake in shares of EPAM Systems by 429.1% in the fourth quarter. Merit Financial Group LLC now owns 11,196 shares of the information technology services provider’s stock valued at $2,294,000 after acquiring an additional 9,080 shares during the period. Institutional investors own 91.58% of the company’s stock.

EPAM Systems Trading Up 4.8%

The company’s 50 day simple moving average is $91.11 and its 200-day simple moving average is $123.83. The company has a quick ratio of 2.67, a current ratio of 2.75 and a debt-to-equity ratio of 0.01. The firm has a market cap of $5.09 billion, a P/E ratio of 13.21, a P/E/G ratio of 0.88 and a beta of 1.39.

EPAM Systems (NYSE:EPAM) last announced its quarterly earnings data on Thursday, August 6th. The information technology services provider reported $3.38 EPS for the quarter, beating the consensus estimate of $3.16 by $0.22. The company had revenue of $1.41 billion for the quarter, compared to the consensus estimate of $1.41 billion. EPAM Systems had a return on equity of 15.84% and a net margin of 7.15%.EPAM Systems’s quarterly revenue was up 4.6% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.77 EPS. EPAM Systems has set its FY 2026 guidance at 13.080-13.240 EPS and its Q3 2026 guidance at 3.380-3.460 EPS. As a group, research analysts predict that EPAM Systems, Inc. will post 10.4 earnings per share for the current fiscal year.

About EPAM Systems

EPAM Systems, Inc is a global provider of digital platform engineering and software development services. The company partners with clients across industries—such as financial services, healthcare, retail, and technology—to design, develop, and maintain complex software applications and digital experiences. EPAM’s offerings include custom software development, application management, infrastructure management, quality assurance, and testing services, enabling organizations to accelerate digital transformation and enhance operational efficiency.

In addition to its core engineering capabilities, EPAM delivers a range of specialized services, including product design and consulting, data and analytics, cloud computing, DevOps, and cybersecurity.